Customizing the Product Life Cycle and its Management for the Optimal Handling of Digital-Physical Products within the Railway Industry

Rampal, Vikrant (2022) Customizing the Product Life Cycle and its Management for the Optimal Handling of Digital-Physical Products within the Railway Industry. DBA thesis, University of Worcester.

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Abstract

Competitive products are considered as an essential source of corporate success, which is why their continuous development plays a decisive role. Thereby, diverse product innovation results from the integration of digital solutions in physical products. Such so-called "digital-physical" products are hybrid products, meaning neither purely physical nor purely digital, in which information technology is an integral component and plays a significant role in determining the functionality of the product. Digital-physical products enable companies to use new sales strategies, services and business models along the product life cycle to ultimately increase the product's sales. This creates various opportunities outside of product development, especially for sectors such as the railway industry, whose products are required to have a long service life. At the same time, this affects the management of the product along the life cycle and leads to a change in company-specific processes, concepts and models. Particular attention is paid to product management, which is responsible for controlling and planning the activities of a product. Despite the obvious changes caused by digital-physical products, many companies still use their previous concepts and models like the life cycle model in product management and only adapt them inadequately to the new circumstances. This can result in ineffective and inefficient management of products. Researchers have recognized this importance and are therefore focusing on adapting life cycle concepts for the purely digital world. However, little is known about the discussions around adapting life cycle concepts for the transition between physical and digital worlds, especially outside of product development. Therefore, the aim of this study was to explore the influence of digital-physical products on the market phase of the classic product life cycle model and the product management as well as product managers. Specifically, the product life cycle model within Siemens Mobility GmbH (Business Unit Rail Infrastructure) and its product management were to be adapted to digital-physical products. In this study, the inductive-qualitative research approach was used, and the case study served as the research strategy. The case study was well-suited for this study as it was necessary to delve deep into the subject matter to gain an understanding of the benefits of digital-physical products and to identify and analyze the impact on the traditional product life cycle and product management. Expert interviews and focus groups were used as data collection methods to benefit from the personal experiences of the experts, most of whom work with digital-physical products, and thus generate knowledge together. With the help of these methods, the perspectives and experiences of the experts in this field could be revealed and understood in order to achieve the objectives of the study.

As a result, the research has shown that digital-physical products have a significant influence on the classic product life cycle and that a change in the way these products have been handled so far is necessary. In this context, considering the boundary conditions of the railway industry and the aforementioned company, the product life cycle model was expanded to include an integrated digital cycle within the product life cycle and a new role, the digital product manager, was introduced. Furthermore, as a result, the previous product management was organizationally supplemented by a digital portfolio in order to be able to optimally manage digital-physical products. The study thus provides a scientific contribution on the correlation between digital-physical products and the theory of the product life cycle model. The previously missing understanding of how digital-physical products interact within the framework of the product life cycle model as well as its impact on product management was addressed in this thesis. In this way, a contribution was made to the product life cycle theory by mirroring and integrating the nature and characteristics of digital-physical products. The findings and changes resulted in a product life cycle model and product management adapted for digital-physical products. In practice, the study helps to better structure the often-reactive behaviour of a product manager in relation to these products. The orientation towards a second cycle that focuses on the digital part of a product helps with strategic decision-making and roadmap planning in practice.

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